Small Business Growth Expected in 2022 and 2023
Updated: Aug 3
The International Monetary Fund (IMF) says the U.S. economy is likely to slow in 2022 and 2023 but will "narrowly avoid a recession." Yet, this time, workers say they won't just tough it out in their current jobs, but will take a chance and turn to entrepreneurship instead. In a recent survey conducted by Intuit, 83% of people said COVID-19 accelerated their plans to start their own business. Most of the startups in 2022 will be sole proprietorships, but it is predicted that 5.6 million of those new small businesses will hire employees. Of the 8,000 U.S. workers surveyed by Intuit, 56% say they plan to spend significantly or somewhat more at small businesses over the next six months.
In California, for instance, applications for new business licenses are on the rise: 442,324 applications were filed in 2020, a 21.7% increase from the year before, according to an analysis of data from the U.S. Census Bureau.
However, according to data from the Bureau of Labor Statistics, approximately 20 percent of small businesses fail within the first year. By the end of the fifth year, about 50 percent will have failed.
Dr. Sarah Liew, CEO and Founder of Meridian Wish, a non-profit that supports entrepreneurs through business, legal, investment education and workshops, says the key to keeping small business alive and thriving, particularly for first- and second-generation immigrants, is to create steady and ongoing training.
"When I first started my business, I had various difficulties in cash flow, finance, and customer management," says Liew, who holds a doctorate in both Business Administration and Sales & Marketing. "There was no place to learn in the local community. I paid a lot of money to learn from various business school courses. I also saw business owners experiencing the same difficulties as I had. I felt very sad to see many start-up businesses shut down due to the mistakes or ignorance of managers. I knew I had to help the business community in some way."
Liew, who also runs a nonprofit business school, says the key to success is providing the best service at the lowest service for all entrepreneurs, especially for immigrants "who are seeking to live the American Dream."
Too many entrepreneurs and business owners are currently suffering, she adds, and not just from the fallout of the pandemic. Liew says that new community centers should be created - and existing ones revamped - to help entrepreneurs continue with ongoing business development, especially during the more challenging times.
"I understand the pain and real needs of small business owners because I've been there," Liew states. "It's heartbreaking to see businesses close and employees lose their jobs. But part of the solution starts with ongoing education and providing resources when businesses need it most. This way they can thrive for many years instead of just a few months.
ABOUT MERIDIAN WISH
Meridian Business Legal Investment Wish Foundation is a 501 (c) (3) non-profit that supports entrepreneurs, employment and job training through business, legal, investment education and vision workshops. Founded by Dr. Sara Liew, the mission of Meridian Wish mission is to help people become self-sufficient and become contributing members of society with stable jobs and businesses that thrive and offer stability for their families and community. To learn more about Meridian Wish visit their website at www.meridianwish.com.
Source: Originally published on Yahoo News >>